Dáil Éireann debate -
Wednesday, 2 Apr 2003

Vol. 564 No. 2

Adjournment Debate. - Plant Closures.

Caoimhghín Ó Caoláin

I join with Deputy Crawford in making what is a very important appeal to the Tánaiste and Minister for Enterprise, Trade and Employment, who is represented here this evening, to exercise all possible energies and explore all possible avenues to help save the CPV, Container Pressure Vessels, plant in Clones, County Monaghan, and the current workforce of 85 people. The people of Clones and County Monaghan are devastated by the news that broke only in the past 24 hours, indicating that the workforce would be made redundant and that a negotiation process between the parent company of CPV, Terex Corporation, and a proposed new company to take over the plant, had failed. The 85 workers have been laid off, but that figure only tells part of the story. At its zenith, this plant employed up to 140 people and would have been the largest manufacturing concern in Clones and one of the largest in County Monaghan.

There is a history to this closure. Five days before Christmas, the then workforce of 99 people, their families and the wider community were shocked to learn of the decision by the parent company to close the CPV plant. They recognised their jobs were in jeopardy with a date for final closure set for the past week. It had been known for some time that there were difficulties with the CPV enterprise at Clones, not in relation to its viability or because of relations between management and workforce – far from it – but because of the absence of a commitment on the part of the parent company to regard CPV as an integral part of its wider manufacturing base. It was taken over as part of the bigger Powerscreen take-over by Terex Corporation in recent years and was not a natural element in its focus.

Earlier last year, as a result of the indications made to us by the management of CPV and Terex representatives, I and other Deputies raised directly with the Minister the difficulties facing the company. We urged her to meet the management and that the various State agencies would employ their best efforts to stave off the final closure. Following the Christmas announcement, to which I referred, I again contacted the Minister's office urging her to act immediately to rescue these crucial jobs for the workforce and the wider community in Clones, for whom this is a devastating economic blow. Shortly afterwards, the management, workforce and community were given hope by the prospect of the company being taken over and the jobs being saved. Only a small number of redundancies occurred, with the result that up to 48 hours ago, more than 80 workers were still in place and hoping and praying for a successful conclusion to the negotiations between the parent company, Terex Corporation, and NT Logic, a new player.

However, this week came the crunch news that the prospective take-over of the plant by NT Logic had collapsed. I ask the Minister of State to convey to the Minister my appeal and that of Deputy Crawford and all opinion who recognise that the loss of these jobs in Clones, County Monaghan, will have devastating consequences for the workers, their families, the town of Clones and the Border community in County Monaghan. This closure will have consequences similar to what would happen if there was a closure of a plant of proportionate size in Dublin employing thousands or in other major population centres.

Mr. Crawford

I thank you, Sir, for allowing me to raise this vital issue. Like my colleague, Deputy Ó Caoláin, I was shocked to learn the news this week that the negotiations between Terex Corporation and NT Logic had broken down. CPV has had a long and proud record in Clones, a town that has suffered more than any other as a result of the long period of Troubles in Northern Ireland and the Border region. For many years Clones was cut off from its natural hinterland. In spite of these problems, CPV was established and maintained, giving first class employment to people from both sides of the Border. It was a true cross-Border project. Many efforts have been made to establish cross-Border projects to bring together people from both sides of the Border, yet CPV is to be closed.

Up to last autumn, CPV gave employment to at least 140 people, but the last 80 employees received their walking papers on Monday, 31 March 2003. All the local people and politicians have worked through the local chamber of commerce in a united and tireless fashion to find an alternative buyer and a straight take-over, thus avoiding redundancies. Major questions arise over how so much work, goodwill and promise failed. Nevertheless, I pay tribute to Terex Corporation personnel, the directors of NT Logic and others at the ABN-AMRO group for their openness and frankness.

The Tánaiste and Minister for Enterprise, Trade and Employment must ensure that every possible effort and commitment is given to any potential group or individuals who will reopen this plant. Orders are still available and new products can be produced by the factory to provide much needed environmentally friendly products. Enterprise Ireland can give support to provide a new beginning with a long-term future to an Irish based or perhaps even a Monaghan based group. People, many of whom have long experience in this kind of business, are committed and interested. IDA Ireland has a role to play with potential outside interests. However, I favour local involvement, as it has proved in the past to have long-term commitment and pride in maintaining such industry in the local area.

The people in Clones and the wider Border region have received little benefit from the Celtic tiger or the peace process by way of new jobs. The infrastructure, such as roads, railway or broadband, is not the best. The CPV plant stands on the site of the railway station, which has been closed since the middle 1950s. At that time we were promised that roads would be built to replace the railway.

The workers at the plant are of the highest calibre and are capable of doing a first class job. Terex Corporation never saw the pressure tank business as part of its core business and from the outset made clear it was not committed to it. There is an opportunity here. The Minister of State on behalf of the Minister, and the Minister herself, must make a major commitment to this hard pressed Border region. They must make an all-out effort.

We could call for the establishment of a task force and consultancy groups, but we do not want that. We simply want the Minister to use the available structures to give whatever financial support she can to reopen this plant. The redundancy payments will be paid this Friday, the doors will close but the plant and machinery will still be there. The personnel and goodwill is available to reopen the factory in the shortest possible time.

An insurance issue is involved in this. Part of the downfall of the plant was a problem with insurance. The Tánaiste and her office have a major role to play to ensure this never happens again and that there are bonding and guarantees. The closure could not have happened north of the Border because the plant would have been covered by the state there when the insurance company went bust.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

I thank Deputies Ó Caoláin and Crawford for raising this matter on the Adjournment. I learnt with grave disappointment of the decision by Terex Corporation on 31 March to close its subsidiary, CPV Limited, with the loss of 98 jobs. I am conscious of the effect the closure of this plant will have on Clones and, most immediately, the employees and their families.

In December 2002, Terex announced that the Clones facility would close unless a suitable buyer could be found by 31 March 2003. In the past three months several parties had expressed interest, most recently NT Logic, a United Kingdom based company. Both IDA Ireland and Enterprise Ireland have maintained contact with the local management and will continue to provide whatever support is most appropriate.

In reaction to the closure announcement at CPV Limited, FÁS, the national training authority, contacted the company to discuss a detailed programme to assist those who are being made redundant to find suitable alternative employment. FÁS is making available its full range of support services, including skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses. FÁS will also ensure ongoing support and action to keep redundant workers in touch with the labour market.

In terms of finding new investment and providing new sources of employment in Monaghan, I am determined to do everything I can to see that this happens. The State agencies continue to aggressively market the area, which forms part of the Border, midland and west region which is a priority location for jobs promotion by the agencies.

The agencies are also committed to bringing about balanced regional development, with IDA Ireland having a target of locating 50% of all new greenfield investment in the Objective One region. The availability of suitable premises and a committed and motivated workforce are major selling points.

Enterprise Ireland is working closely with its client companies and regional partners in developing and sustaining businesses in the area, enhancing the business environment and encouraging new start-up companies with strong growth potential. Enterprise Ireland, as part of its regional development, also encourages Dublin-based companies to locate their business expansions in the BMW region.

In addition, Enterprise Ireland is actively promoting the Lough Egish food park for any companies which are considering locating to the region. The park is a flagship project to attract food companies to the region. A number of companies are already located there and negotiations are ongoing for the new start-up businesses in the prepared consumer foods sector.

The designation of Monaghan town as a hub in the national spatial strategy will drive its development within County Monaghan and help to capitalise on the town's strategic position within the overall Border area. There is emphasis in the national spatial strategy on building upon the strong small and medium enterprise base in the central part of the Border area to extend the diversification of employment. The national spatial strategy will utilise the network of towns in Monaghan and strengthen their ability to provide a wide range of service functions for their hinterland areas and act as further economic drivers in the county.

The State development agencies under the aegis of my Department will continue to market County Monaghan for investment and will make every effort to secure alternative employment for the workers affected by the closure.